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over 65 or with certain disabilities, and the joint federal-state Medicaid program provides coverage for qualifying low-income individuals.
Americans aged 65 or older and people with certain disabilities may qualify for Medicare, a federal health insurance program. In many parts of the country, people eligible for Medicare can choose between managed care and traditional plans. You can switch plans for any reason. However, you must officially notify the plan or the local Social Security office, and it may take up to 30 days for the change to take effect.
Those enrolled in the traditional Medicare plan can purchase private insurance to help cover some of the gaps in Medicare coverage. These supplemental policies, sometimes called Medigap or Medicare Supplements (MedSupp), are required by law to cover certain expenses, such as the daily coinsurance amount for hospitalization. Some policies may offer additional benefits, such as coverage for preventive medical care, prescription drugs, or at-home recovery. In contrast to Medicare, Medicaid is a joint federal-state health insurance program designed to cover the healthcare costs of qualify- ing low-income individuals. It gives special consideration to children, pregnant women, and the disabled. Some states require people covered under Medicaid to join managed care plans. Insurance plans and state regulations differ, so check with your state Medicaid office to learn more.
Additional Forms of Insurance Worth Considering
Writing for MSN Money, financial management columnist Liz Pulliam Weston adds helpful insight on four additional types of insur- ance worth considering—1) catastrophic health insurance coverage, 2) umbrella liability insurance, 3) disability insurance, and 4) long-term care insurance.
Maintaining Appropriate Levels of Health Insurance
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